Law: Income Tax Act, 1922

Section: 2(11)

Income-tax Act (XI of 1922)----S. 2(11)(0---'"Previous year"---Length of the previous year need not be 12 calendar months---Period of previous year in respect of a newly-set up business, profession or vocation may be less than 12 months---Assessee has the option to choose his accounting year ending on any date within the preceding financial year as his "previous year" and once he has exercised such an option the meaning of the expression "previous year" as applicable to him is determined, and he cannot exercise such option again so as to vary the meaning of the expression "previous year" as then applicable to him, except with the consent of the Income-tax Officer and upon such conditions as the Income-tax Officer may think fit to impose--¬Income-tax Officer may refuse to give his consent, but if he does give his consent, he has ample power to impose the condition that the full period from the end of the "previous year" for the preceding year's assessment to the end of the new accounting year should be taken as the previous year for the current assessment year---If the previous year at any given time applicable to an assessee ends on 31st March and he wants to vary it so as to make it end on 30th June next, the Income-tax Officer has power to accord sanction to the change on the condition that the "previous year" would consist of the entire period of 15 months-¬Rationale behind the conferment of such power on Income-tax officer stated. The length of a previous year need not necessarily. be 12 calendar months. Under section 2(11)(i)(b) of Income-tax Act, 1922 the previous year is such period as may be :determined by the Central Board of Revenue or such authority as the Board may authorise in this behalf, and the period so determined may be more or less than 12 months. Under section 2(11)(i)(c), the period of previous year in respect of a newly set-up business, profession or vocation may be less than 12 months. In this background, section 2(11)(i)(a) may be considered. The assessee has the option to choose his accounting year ending on any date within the preceding financial year as his "previous year". Once he has exercised this option the meaning of the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492